Gulf Coast natural gas pipeline assets owned by subsidiaries of Chevron Corp. are to be acquired by EnLink Midstream.
The assets include approximately 1,400 miles of natural gas pipelines spanning from Beaumont, Texas, to the Mississippi River corridor and approximately 11 billion cubic feet of working natural gas storage capacity in Southern Louisiana.
Dallas-based EnLink said on Monday that it has agreed to pay $235 million, subject to certain adjustments.
Commenting on the transaction, Barry E. Davis, president and CEO of EnLink Midstream, said that these assets would expand the company's franchise position in Southern Louisiana, complement its existing business and provide opportunities to serve a wider range of customers with an expanded range of services.
EnLink will acquire the Bridgeline system, which comprises around 985 miles of natural gas pipelines in Southern Louisiana, as well as the 150 miles of natural gas pipelines in Texas and Southern Louisiana which make up the Sabine system and 215 miles of offshore Mississippi and Alabama pipelines in the Chandeleur system.
The deal also includes three storage caverns located in Southern Louisiana and ownership and management of the title tracking services offered at the Henry Hub, the delivery location for NYMEX natural gas futures contracts. Henry Hub is connected to 13 major interstate and intrastate natural gas pipeline and storage systems, EnLink said.
At present the transaction remains subject to regulatory clearance and other closing conditions but EnLink expects to take over the assets in the fourth quarter of 2014.
